S2 specializes in buying B- and C-quality assets that are under leased and poorly managed in markets with positive demographics, strong submarket rent and occupancy growth. We select properties that can reach a stabilized cash flow quickly with modest leverage. This approach dramatically reduces risk and creates a cash-flowing asset we can sell or refinance in 18 to 24 months.
S2 has purchased and renovated more than 25,000 multifamily units across Arizona, Texas, North Carolina, and Florida—creating a portfolio worth $3 billion. Because we’re fully integrated, we handle every aspect of asset identification, financing, design and construction, operations, onsite management and disposition ourselves. Together, our principals have managed nearly 100,000 apartment units over the last 20 years. We take a direct, hands-on approach to every aspect of every deal.
S2 has successfully invested more than $250 million in upgrades and renovations—tailoring each project to the asset’s standing in its competitive set. We typically invest $10,000 to $15,000 per unit upgrading common areas, apartment interiors and amenities. Our projects return an average of 20 percent to 30 percent on investment from capital expenditures.